Stratasys Bolsters Balance Sheet with $120 Million Fortissimo Capital Investment

Stratasys Ltd. (Nasdaq: SSYS), a leading polymer 3D printing solutions provider, has announced a significant $120 million equity investment from Fortissimo Capital, a prominent Israeli private equity fund. This strategic partnership will strengthen Stratasys' financial stability, enhance its market position, and support its growth prospects. Here's a closer look at the implications of this investment.



Financial Strengthening and Market Enhancement

The $120 million investment from Fortissimo Capital provides Stratasys with additional capital, bolstering its balance sheet and financial flexibility. This influx of funds will enable Stratasys to capture market opportunities, pursue strategic acquisitions, and drive growth. The partnership with Fortissimo, known for its expertise in technology and industrials, will also enhance Stratasys' competitive position in the 3D printing industry.

Strategic Guidance and Governance Influence

As an experienced private equity investor with a growth focus, Fortissimo brings deep understanding of Stratasys' business and a proven track record of investment in private and public technology companies. This strategic guidance will help Stratasys drive additional long-term value for all shareholders. In connection with this investment, Fortissimo's Founding and Managing Partner, Yuval Cohen, will join Stratasys' Board of Directors, providing Fortissimo with a seat at the table to influence strategic decisions and drive operational improvements.



Exit Flexibility and Long-Term Commitment

The agreement's provisions for potential tender offers and additional share acquisitions provide Fortissimo with multiple paths to enhance returns while ensuring proper shareholder protections through unaffiliated shareholder voting requirements. This exit flexibility allows Fortissimo to optimize its investment over time, which could indirectly benefit Stratasys by encouraging Fortissimo to maximize the company's long-term performance. The 18-month lock-up period demonstrates Fortissimo's long-term commitment to Stratasys, as they are not able to sell their shares for at least 18 months after the transaction closes.

In conclusion, the $120 million equity investment from Fortissimo Capital is a significant vote of confidence in Stratasys' future, supporting its financial stability and growth prospects. This strategic partnership will enhance Stratasys' competitive position in the 3D printing industry, drive growth, and create long-term value for shareholders. By leveraging Fortissimo's financial strength, strategic guidance, industry expertise, governance influence, and exit flexibility, Stratasys can better navigate the challenges and opportunities in the additive manufacturing sector.